Larkspur Music School borrowed $38,400 from the bank signing a 6%, 6-month note on November 1. Principal and interest are payable to the bank on May 1. If the company prepares monthly financial statements, what adjusting entry should the company make at November 30 with regard to the note (round answer to the nearest dollar)? (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)
Larkspur Music School borrowed $38,400 from the bank signing a 6%, 6-month note on November 1. Principal and interest are payable to the bank on May 1. If the company prepares monthly financial statements, what adjusting entry should the company make at November 30 with regard to the note (round answer to the nearest dollar)? (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikrambahi
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Your answer is partially correct.
Larkspur Music School borrowed $38,400 from the bank signing a 6%, 6-month note on November 1. Principal and interest are
payable to the bank on May 1. If the company prepares monthly financial statements, what adjusting entry should the company make
at November 30 with regard to the note (round answer to the nearest dollar)? (List all debit entries before credit entries. Credit account
titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account
titles and enter O for the amounts.)
Date
Nov. 30
Account Titles and Explanation
Interest Expense
Interest Payable
Debit
Credit
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